Gold surrenders to the strength of USD 8/3/2023

The yellow metal gave up its recent gains as a result of the rise of its American rival after Jerome Powell, Chairman of the Federal Reserve, testified yesterday before the Senate in the semi-annual testimony, to lead gold to resume the bearish corrective path after it succeeded in breaking 1838, explaining that this will stop attempts to rise and put gold prices under pressure. Negative to test the strength of the bullish trend with the target of 1828, representing one of the most important keys to the trend.

Looking at the 4-hour chart, we find that gold failed to maintain positive stability above 1828, Fibonacci correction 38.20%, accompanied by the return of the simple moving averages by pressing the price from above, with a clear momentum decline. Alert: Stochastic is trying to gain new momentum.

The daily trend is still bearish, targeting 1800 and 1795 as initial targets, noting that the next official target for the bearish correction is around 1787, a correction of 50.0%, and the price behavior of gold should be monitored around this level due to its importance to the general trend in the short term, because breaking the mentioned level increases and accelerates the strength of the bearish trend, opening the door to visit 1781 in principle. The descending goals may extend towards 1753.

As a reminder, the return of trading stability again above 1828 postpones the chances of a decline, and we may witness a re-test of 1840.

Note: Today, we are awaiting high-impact economic data, and we may witness high volatility in prices, and irregular movements may occur:

• ADP Employment Change 

• JOLTS Job Openings in US and Employment Change in Eurozone

• The semi-annual testimony of Jerome Powell, Chairman of the Federal Reserve, before the Senate.

• ECB’s President Lagarde’s speech 

• Bank of Canada interest rate decision and statement.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1795.00	R1: 1840.00
S2: 1788.00	R2: 1865.00
S3: 1781.00	R3:  1879.00